®. ® 2 3 4 first-class service performance - - - - - - - - 96.04 95.89 95.35 95.22 93.17 93.26...
TRANSCRIPT
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®
CAPITAL METRO AREABUSINESS CUSTOMER
FOCUSGROUP MEETINGOPERATIONS UPDATE
Dave WilliamsVP, Network Operations
February 19, 2014
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®
AGENDA QTR I SERVICE PERFORMANCE
2
PEAK SEASON OVERVIEW
SUMMARY
MTE UPDATE
LOAD LEVELING INITIATIVE
OPTIMIZATION UPDATE
LABEL LIST CHANGES
24 HOUR CLOCK COMPLIANCE
FLAT STRATEGY UPDATE
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3
FIRST-CLASS MAILQTR 1 SERVICE PERFORMANCE
STANDARD AND PERIODICALS
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SERVICE PERFORMANCEFIRST-CLASS MAIL
4
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First-Class Service Performance
QTR 1 FY13QTR 1 FY14 TARGET
98
96
94
92
90
88
86
84
-
-
-
-
-
-
-
-
% O
N-T
IME
96.0495.89 95.3595.22
93.1793.26
95.25
* Targets Shown are FY 2014
96.8096.50
5
OVERNIGHT 2 DAY 3-5 DAY(.15) SPLY (.13) SPLY +.09 SPLY
* Preliminary Qtr 1, FY 2014 Data
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SERVICE PERFORMANCESTANDARD AND PERIODICALS
6
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Standard Letters Service Performance
92
88
84
80
76
-
-
-
-
-
-
-
-
% O
N-T
IME
89.95
86.36
SCF LETTERS
90.8387.96
NDC LETTERS
91.00
72
68
64
QTR 1 FY13QTR 1 FY14 TARGET
* Targets Shown are FY 20147
+3.59 SPLY +2.87 SPLY
* Preliminary Qtr 1, FY 2014 Data
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Standard Flats Service Performance
90
86
82
78
74
-
-
-
-
-
-
-
-
% O
N-T
IME
74.27
70.44
SCF FLATS
84.1781.79
NDC FLATS
91.00
70
66
62
QTR 1 FY13QTR 1 FY14 TARGET* Targets Shown are FY 2014
8
+3.83 SPLY +2.38 SPLY
* Preliminary Qtr 1, FY 2014 Data
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Periodicals 1-2 Day Service Performance
92
88
84
80
76
-
-
-
-
-
-
-
-
% O
N-T
IME
83.8780.79
PERIODICALS
91.00
72
68
64
QTR 1 FY13QTR 1 FY14 TARGET* Targets Shown are FY 2014
9
+3.08 SPLY
* Preliminary Qtr 1, FY 2014 Data
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10
Continuous Improvement Focus
Lean Mail Processing (LMP) Improving efficiencies in mail flows and cycle times through
application of LMP Principles throughput the network
Driving daily compliance to Run Plan Generator (RPG) Planned vs. actual equipment Run Hours, Volumes, and
Throughput per hour performance
Load Leveling Leveling the Monday workload to improve efficiencies and
predictability in delivery performance
Leveraging IMb Enhanced diagnostics to enable course correction to ensure FIFO
processing and prevent service failure
Service Performance
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11
MTE UPDATE
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Fall Mailing Season Update
Successful Fall Mailing Season!!!
No cancelled orders
Overall inventory exceeded demand, allowing us to fulfill every order
Strongest inventories of the past 5 years
12
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MTEOR Full Implementation
MTEOR moves toward full implementation
MTEOR will be launched for Local Mailers in all Areas in 2014 using a phased approach by Area
Southern Pacific – February 3, 2014
Northern Pacific – March 3, 2014
Eastern Area – April 7, 2014
Great Lakes Area – May 5, 2014
Southern Area – June 2, 2014
Northeast Area – July 7, 2014
Capital Metro Area – August 4, 2014
Western Area – September 8, 2014
13
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14
PEAK SEASONOVERVIEW
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CANCELLATION VOLUME
TOTAL PACKAGES
RETAIL ACCESS
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16
OPTIMIZATION UPDATE
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Optimization Update
17
Network Rationalization – Phase 1 Completed 176 Consolidations
Network Rationalization – Phase 2
POSt Plan 7,995 Implementations Completed in FY 2013
Remaining 5,186 Will be Completed in FY 2014
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LABEL LIST CHANGESSTRUCTURED RELEASE CYCLE
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19
Structured Release Cycle
Background
Task Team #11 re-opened per request of mailing industry
USPS agreed to 30-day notification period
USPS can be more agile with labeling list changes (5-digit) through monthly update cycle
- Enables top down management of labeling lists
- Ensures alignment of pre-sortation & internal USPS sort schemes
Benefits of Top Down Approach to L012 and L006 Lists
- Enables deeper pre-sort levels
- Fewer piece and tray handlings
- More efficient use of containers & transportation
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20
FLATS STRATEGY UPDATE
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21
Flats Strategy Status
Flats Strategy Document
Collaborative effort with Industry Association leaders
Will include overview of strategies
Sub-group exploring additional opportunities
Draft disseminated to workgroup for review on
January 10, 2014
Joint strategy discussion January 13, 2014
Collaborative efforts will continue through 2014
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DSCF STANDARD MAILLOAD LEVELING
22
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DSCF Standard Mail Load Leveling
On average ~42% of DSCF Standard Mail volume is drop shipped by mailers on Friday. The disproportionate volumes committed for delivery on Monday results in:
Overview
Service Variability
Operational Inefficiencies
Increased Cost
23
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Current State
FY13 Qtr 1 All Dropship Appointments / Vol for Full Service IMb Standard Mail
376.7M
65.8M
523.3M
357.9M 372.8M
434.1M
942.3M
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0
1,000.0
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
SAT SUN MON TUE WED THU FRI
Mai
l Vol
ume
(mill
ions
)
Num
ber o
f Dro
pshi
p Ap
poin
tmen
ts
Dropship Appointment Counts Destination Piece Counts
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Impact on Delivery – Average % of Standard Mail Delivered by Day
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
SAT SUN MON TUE WED THU FRI
Del
iver
y D
ay V
olu
mes
DSCF Standard Flats DSCF Standard Letters
12.6%
Qtr 1, FY 2013
42.4%
13.0%
5.2%
16.3%
10.5%
35.4% Standard Letters
52.4% Standard Flats
Monday Delivered Volume
Current State
25
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26
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Monday Total
Current State Impact
Percentage of City Carriers Returning After 1700
In FY 2013 54.4% of instances where a carrier returnedto the office after 1700 occurred on a Monday
Per
cen
t R
etu
rned
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24 Hour Clock Impact
Disproportionate Monday workload not only
results in late delivery and added costs, it also
impedes our ability to meet critical 24 hour
clock parameters resulting in:
Late processing
Late / missed transportation
Service failure
Additional processing / transportation costs
27
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28
Current Proposed
Thursday Friday, Saturday, Monday Friday, Saturday, Monday
Friday Saturday, Monday Saturday, Monday, Tuesday
Saturday Monday, Tuesday Monday, Tuesday, Wednesday
Sunday Monday, Tuesday, Wednesday Monday, Tuesday, Wednesday
*The current Critical Entry Time (CET) for Standard mail is 4 pm
**For delivery in the continental United States
DSCF Standard Mail**Dropped Before 4pm* on
DELIVERY DAYS MEETING SERVICE STANDARD
Expected Days of Delivery
SCOPE OF LIMITED CHANGE
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Expected Days of Delivery
WHAT DOESN’T CHANGE
Standard Mail dropped at a DDU does not change
Standard Mail dropped at a NDC does not change
EDDM-Retail does not change
Periodical/Newspaper processing does not change
First-Class Mail does not change
Priority Mail does not change
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South Jersey Test
Test Location – South Jersey P&DC (First Lean Mail Processing Plant)
Test Period – Sep 12th through Sep 26th, 2013
Delivery Zones Participating: 110
Delivery Routes Participating: 1,190
Scope: Evaluate the impact of load leveling the Standard Mail volumes received at the South Jersey P&DC across the days of the week.
Standard Mail Volume in Evaluation: 5.3M pieces30
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Trained Expeditors, Mail Handlers on new color code matrix
Changed all Signage
Developed comprehensive plan with local site to segregate mail by color code, stage at plant
Strict adherence to machine schedules allowed us to control what mail was advanced by sort program
Load Leveling Standard Mail Test
31
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Test
Wee
k –
Avg
Del
ive
red
Vol
um
e by
Day
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
SUN MON
20.8%
TUE
15.2%
WED
14.2%
THU
17.3%
FRI
15.4%
SAT
17.1%
South Jersey P&DCSep 14th – 20th
Efficiency Reduced Total Weekly Carrier Work Hours
Reduced Carrier OT and Penalty OT
Employee Satisfaction Overwhelmingly Positive Feedback
Customer Service Improved Carrier Return Times Improved On-Time Service Performance
Test Results
32
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1/10IndustryWebinar
2/28Publish
Final Rule
Load Leveling Initiative Timeline of Events
FY 2014FY 2013
5/29TelecomWG# 157
6/11TelecomWG #157
7/12TelecomWG# 157
7/24TelecomWG# 157
8/7TelecomWG# 157
8/28-29MTAC MeetingWG# 157 Meeting
10/21TelecomWG# 157
11/6TelecomWG# 157
11/20-21MTAC MeetingWG# 157 Meeting
Load LevelTest
So JerseyP&DC
9/12 - 26
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ImplementNo earlier than 3/27
1/14-16MTAC Meeting
12/10BOG
Approval
12/27PRC
Filing
2/13CommentsProposed
Rule
33
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Next Steps
34
Review Comments to Proposed Rule – Feb 13, 2014
Publish Final Rule: February 28, 2014
Implement Change no Earlier Than March 27, 2014
Continue Stakeholder Engagement
Receive PRC Advisory Opinion
Add Additional Sites to Test Implementation Approach
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Going Forward
USPS - INDUSTRY COLLABORATION
Commitment to Communicate
SUCCESS REQUIRES COLLECTIVE EFFORT
Provide Easy Access to Information and FAQs Updated Weekly on RIBBS
Committed to Collaboration/Communication
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Cost Containment
Predictable Service
Customer Satisfaction
36
Expected Long Term Benefits
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24 HOUR CLOCK COMPLIANCE
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• Collections
Modify current 24 hour clock parameters to reduce the cycle time expectations of:
• Processing• Transportation• Delivery
TARGET – 95% CARRIERS OFF THE STREET BY 1700
Collective Effort
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Charter
24 Hour Clock
ComplianceCharter
Implement processes, technology and operational discipline to align with the 24hr clock parameters to drive consistent service
and increase operational efficiency.
Owner Workstream Owner
1 Delivery Ed Phelan 4 Network Operations Engineering Dave Williams
2 Post Office Operations Ed Phelan 5 Product Visibility Robert Cintron
3 Processing Operations Dave Williams 6 Engineering Systems Mike AmatoMegan
Brennan
ELT SponsorInitiative Lead
Workstream
Detailed project plans developed and tracked for key activities.
Area and District project plans under development to coincide with all Headquarters activities for field implementation
Provide weekly updates on key activities, risks, and next steps. Weekly meetings every Thursday starting January 2, 2014
Escalate any issues/barriers to success to ELT as needed
Union / Management Associations engagement 39
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SUMMARY
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Intense Focus on 24 Hour Clock Execution
Summary
Our Commitment
Predictable Service
Industry Engagement
Effective Use of Data and Diagnostic Tools
Going Forward
Drive Operational Efficiencies
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Thank YouQuestions?
Thank YouQuestions?
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